The profitability of the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-based multilateral insurer and member of the Islamic Development Bank Group, remains resilient, says Moody's Ratings (Moody's) in a report.
In 2025, the corporation reported a combined ratio (COR) of 21.4% and net income of ID*29.9m ($41.0m), bringing its five-year average COR to 37.8%. Profitability continues to benefit from improved business distribution, lower risk arising from concentrations, and efficiency gains.
Moody’s has affirmed the Corporation’s ‘Aa3’ Insurance Financial Strength Rating (IFSR) with a ‘Stable’ outlook.
Moody's said, “ICIEC's ‘Aa3’ IFSR reflects its standalone credit profile, and support stemming from its shareholders, the IsDB and multiple sovereign members of the Organisation of the Islamic Cooperation (OIC), including the Government of Saudi Arabia.”
Credit profile
ICIEC's standalone credit profile reflects (i) its role as a leading multilateral provider of Shariah-compliant export credit and investment insurance and reinsurance, (ii) good underwriting performance supported by strengthened risk management, (iii) strong asset quality with a highly liquid invested assets portfolio, and (iv) strong capital adequacy that is further supported by its preferred creditor status amongst member states.
These strengths are partly offset by (i) ICIEC's significant exposure to geopolitical risks, and (ii) smaller scale than comparable export credit agencies, which constrains its operating profit.
ICIEC's standalone credit profile continues to strengthen, reflecting enhanced risk management and improved underwriting performance. Its capital adequacy has remained strong and kept pace with the corporation's growing business volumes in recent years.
Capital
To support future growth in line with its mandate of providing political risk and trade-related insurance to OIC countries, ICIEC is implementing a capital increase approved by its Board of Governors in 2022. Subscriptions for the capital remain ongoing and had reached ID471.9m as of 30 June 2026, up from ID308.6m at YE 2022 before the capital increase.
ICIEC's rating also benefits from support from its main shareholders, in particular IsDB and the Government of Saudi Arabia. Given ICIEC's key role in facilitating trade among member countries, Moody’s expects that its shareholders would very likely support the corporation in times of financial distress.
As of 30 June 2026, IsDB held 42.56% of ICIEC's paid capital, with Saudi Arabia and other OIC sovereign members holding the balance. As a member of the IsDB Group, ICIEC also benefits from managerial synergies and from IsDB support of strategy and governance.
Outlook
The stable outlook primarily reflects the global credit rating agency’s expectation of ongoing support from IsDB and member countries. It also reflects the expectation that ICIEC will continue to enhance its risk management and maintain strong levels of capital, asset quality and profitability, while growing and diversifying its business with underwriting discipline.
Commenting on the rating affirmation, Dr Khalid Khalafalla, CEO of ICIEC, stated, “This affirmation is a strong endorsement of ICIEC’s financial resilience and our ability to manage risks effectively in an increasingly complex global environment. It strengthens our position as a trusted multilateral partner, enabling us to expand our reach, mobilise investment and deliver meaningful development impact across our Member Countries through innovative Shariah-compliant insurance solutions.”
*The Islamic dollar (ID) is an international accounting unit created by the Islamic Development Bank (IsDB) that is pegged strictly on a 1:1 basis to the International Monetary Fund's (IMF) Special Drawing Right.